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BMW And Rolls-Royce Made More Money By Selling Fewer Cars
May. 08, 2022 5:35 PM ET by Chase Bierenkoven Pricing / 3 Comments The BMW Group's first-quarter earnings have the answers. The BMW Group says that demand for Rolls-Royce, BMW, and Mini models has skyrocketed over the last year. That's also despite rampant supply issues, exacerbated by the war in Ukraine and echos of the pandemic. The BMW Group credits its new electric models, like the BMW iX and Mini Cooper Electric, for consumers' interest in the group's brands. On paper, that certainly looks to be the case. In its first-quarter financial report, the BMW Group reported that 15% of vehicles delivered this year were electric, up from 11% last year. Those don't sound like huge figures, but when your delivered units numbers close to 600,000 even small margins can be big. Rolls-Royce Rolls-Royce BMW BMW However, that's still fewer cars than the BMW Group delivered last year. In the first quarter of 2021, 636,606 cars were delivered compared to 596,907- down 6.2%. However, the Group made more money than last year, with $12.8 million in profit. It's an interesting dynamic we've seen before. Bentley managed the same trick, crediting the sale of higher-dollar cars for the uptick in profit despite delivering fewer cars. Some of those BMW Group figures can be attributed to the same phenomenon. Rolls-Royce sold 17% more cars than last year's first quarter, totaling 1,624 units delivered. Those are high-dollar cars, and certainly make up for some lost deliveries elsewhere. The other factor in this phenomenon is BMW's first-time consolidation of BMW Brilliance Automotive Ltd. Basically, that's BMW's once-separate Chinese arm. They're responsible for "R&D, procurement, production, sales and after-sales services of BMW automobiles in China." This consolidation is the reason BMW says created its profits for this year. BMW BMW Rolls-Royce Rolls-Royce BMW and Mini delivered 519,796 cars and 75,847 cars respectively. BMW cites the war in Ukraine as one of its more major production pitfalls, saying that it "represented a further risk factor for operations." However, the Group's electric vehicle push is stronger than ever. It says that 27.7% of the models delivered in the first quarter were electric. In total, 89,669 electrified vehicles were delivered this year, up from 70,207. With the consolidation of the BMW Group's Chinese operation, we're not sure where profits can go but up. However, BMW brands are still hampered by supply chain issues. We'll have to wait and see if the brand's numbers can continue to trend upward. Mini Mini Mini Join The Discussion
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BMW iX Mini Cooper Electric Hardtop Rolls-Royce Cullinan Chase Bierenkoven Associate Editor Shortly before applying to law school, Chase decided to take a chance on pursuing his dream job: playing with cars and getting paid for it. Law school was just a means to an end, after all. His first writing job was freelance and barely paid his grocery bill. It quickly turned into a full-time position, eventually leading Chase to join CarBuzz in 2022. Chase now tests cars, and sits comfortably at the news desk when he's not in the driver's seat. In his spare time, Chase can be heard trying to play guitar, or out enjoying Colorado's natural splendor in his BMW M3. Contact Chase @bierenkoven @cbier823 LoginSign Up Home News Features Car Reviews Car Advice 2021 CarBuzz Awards New Cars Used Cars Future Cars Compare Cars Sell My Car Car Dealerships Buy Here Pay Here Used Car Reviews Popular Tags Cars # Video # TOP # Spy Shots # Reveal # Rumor # Auto Show # Supercar # Tuning # Car Culture # Industry News # Motorsport Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Make Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Car Type SUVs Crossovers Sedans Coupes Trucks Sports Cars Wagons Vans Hatchbacks Convertibles Small Cars Luxury Cars Electric Cars Hybrid Cars Future Cars By Price Up to $15K $15K - $25K $25K - $35K $35K - $45K $45K - $55K $55K - $75K $75K - $100K $100K - $200K $200K - $300K Above $300K Back To Top